Nils Pratley on finance + Glencore | The Guardianhttp://www.theguardian.com/business/nils-pratley-on-finance+glencore
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Purge was inevitable after Glencore Xstrata mergerhttp://www.theguardian.com/business/nils-pratley-on-finance/2013/may/16/glencore-xstrata-john-bond
Sir John Bond was arrogant to believe he could carry on as an independent chairman of a merged Glencore Xstrata - and the lack of support from shareholders was extraordinary<p>Sir John Bond and chums had it coming. The former non-executive directors of Xstrata went to war with their own shareholders over the right to hand &pound;170m in post-merger retention pay awards to top executives. They lost that battle at a poll they granted begrudgingly and belatedly. It was arrogant of Bond to believe he could carry on as an independent chairman of a merged Glencore Xstrata, even for a short period, and even in circumstances he described as &quot;anomalous&quot;. His credibility was exploded.</p><p>The other non-executives – Con Fauconnier, Peter Hooley, Ian Strachan and Sir Steve Robson – had more excuse for allowing their names to go forward as directors of the combined beast. Everybody knew the deal was a full-on takeover, not a merger, but the official line remained that it was vital for the new board to have a healthy helping of Xstrata faces. If only for the sake of form, they had to stand.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2013/may/16/glencore-xstrata-john-bond">Continue reading...</a>Executive pay and bonusesXstrataMiningBusinessGlencoreGlencore XstrataThu, 16 May 2013 16:28:07 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2013/may/16/glencore-xstrata-john-bondFabrice Coffrini/AFP/Getty ImagesSir John Bond was chairman of HSBC and Vodafone before joining Xstrata. Photograph: Fabrice Coffrini/AFP/Getty ImagesFabrice Coffrini/AFP/Getty ImagesSir John Bond was chairman of HSBC and Vodafone before joining Xstrata. Photograph: Fabrice Coffrini/AFP/Getty ImagesNils Pratley2013-05-16T16:28:07ZHuge Glencore Xstrata payments create a sense of déjà vuhttp://www.theguardian.com/business/nils-pratley-on-finance/2013/apr/16/glencore-xstrata-payoffs-layoffs
As well as the handsomely rewarded Mick Davis, the new mining firm is shedding almost all of Xstrata's senior staff<p>It started with a tale of over-the-top payments – the &pound;170m that was proposed for 70 top Xstrata executives, and then shot down by shareholders – and now it's ending in similar fashion.</p><p>Mick Davis will collect &pound;4.6m for not working a six-month stint as chief executive of the merged Glencore Xstrata. That's on top of the &pound;9.6m he will collect for not being Xstrata's chief executive. The double severance payment is what the contracts dictate (two separate contracts, you see), but Xstrata's non-executive directors were dozing when they agreed those terms. Departing chairman Sir John Bond will not be missed.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2013/apr/16/glencore-xstrata-payoffs-layoffs">Continue reading...</a>GlencoreXstrataMergers and acquisitionsMiningBusinessGlencore XstrataTue, 16 Apr 2013 18:44:39 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2013/apr/16/glencore-xstrata-payoffs-layoffsUrs Flueeler/APIn numbers of staff, Glenstrata, the company formed from the merger of Glencore and Xstrata, is now bigger than BHP Billiton. Photograph: Urs Flueeler/APUrs Flueeler/APIn numbers of staff, Glenstrata, the company formed from the merger of Glencore and Xstrata, is now bigger than BHP Billiton. Photograph: Urs Flueeler/APNils Pratley2013-04-16T18:44:39ZCity fails to warm to Ivan Glasenberg | Nils Pratleyhttp://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/05/city-ivan-glasenberg-glencore-share-price
Amid much boasting of Glencore's 'robust' performance it's easy to forget how ugly the share price fall since its IPO has been<p>Ivan Glasenberg, Glencore's chief, barring a last-minute hitch with the Chinese competition authorities, has landed his grand merger with Xstrata. What he has not earned, however, is the love of the City.</p><p>As Glasenberg spent the first part of his results presentation on Tuesday boasting of how Glencore's performance in 2012 had been &quot;far more robust than the sector&quot;, it was easy to forget quite how badly the firm's shares had fared since the IPO in May 2011, notwithstanding the 6% gain on Tuesday.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/05/city-ivan-glasenberg-glencore-share-price">Continue reading...</a>GlencoreStock marketsIPOsBusinessXstrataMiningCommoditiesTue, 05 Mar 2013 18:01:08 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/05/city-ivan-glasenberg-glencore-share-priceBobby Yip/ReutersIvan Glasenberg will be running a colossal company. Photograph: Bobby Yip/ReutersBobby Yip/ReutersIvan Glasenberg will be running a colossal company. Photograph: Bobby Yip/ReutersNils Pratley2013-03-05T18:01:08ZTreasury keen to sell part of its stake in Lloyds Banking Grouphttp://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/01/lloyds-rbs-government-sale
Fancy financial footwork over the bailout suggests that the government is anxious to offload some of its shareholding<p>There is no fixed timetable for selling any shares in Lloyds and Royal Bank of Scotland, says the Treasury. Perfectly true, as far as it goes. But you can tell the government is champing at the bit, eager to offload a few, by the fancy financial footwork used on Friday to explain the price at which the state rescued Lloyds in 2009.</p><p>In the past, this territory has been straightforward. UK Financial Investments, the body that &quot;manages&quot; the state's investments in the bailed-out banks, provides the arithmetic in its annual reports. Its text is clear: the Labour government invested in Lloyds in three tranches and &quot;the gross cost of these investments is &pound;20.3bn, at an average cost per share of 73.58p&quot;. There's even an admirably clear table to explain the workings.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/01/lloyds-rbs-government-sale">Continue reading...</a>Lloyds Banking GroupRoyal Bank of ScotlandBankingGlencoreXstrataMiningCentricaCommoditiesEnergyEnergy industryBumi ResourcesCoalBusinessOilFri, 01 Mar 2013 19:54:00 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2013/mar/01/lloyds-rbs-government-saleLefteris Pitarakis/APLabour invested in Lloyds at an average cost per share of 73.6p. So where did the ONS figure of 61p come from? Photograph: Lefteris Pitarakis/APLefteris Pitarakis/APLabour invested in Lloyds at an average cost per share of 73.6p. So where did the ONS figure of 61p come from? Photograph: Lefteris Pitarakis/APNils Pratley2013-03-01T19:54:00ZTrevor Reid's departure is no surprise but what about rest of Xstrata crew? | Nils Pratleyhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/dec/04/trevor-reid-departure-xstrata-no-surprise
Both sides should stop the pretence that the deal is still a merger of equals<p>Would you like to work for Ivan Glasenberg or would you prefer &pound;5.45m? <a href="http://www.guardian.co.uk/business/2012/dec/04/xstrata-chief-financial-officer-trevor-reid-quits" title="">Trevor Reid, Xstrata's finance director, has decided to take the cash</a>, thanks very much. This should be no surprise. He has been Mick Davis's right-hand man since the birth of Xstrata in 2001. As Davis is departing it's understandable that Reid might feel the place just won't be the same.</p><p>What about the rest of the Xstrata crew? It was vital, said chairman Sir John Bond, that the services of the top 70 be retained via a megabucks incentive scheme. Will other members of this precious bunch also claim a diminution in their roles and depart with a payoff?</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/dec/04/trevor-reid-departure-xstrata-no-surprise">Continue reading...</a>XstrataMiningBusinessGlencoreTue, 04 Dec 2012 19:02:11 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/dec/04/trevor-reid-departure-xstrata-no-surpriseSigi Tischler/EPAWork for Ivan Glasenberg or take a £5.45m payoff? Photograph: Sigi Tischler/EPASigi Tischler/EPAWork for Ivan Glasenberg or take a £5.45m payoff? Photograph: Sigi Tischler/EPANils Pratley2012-12-04T19:02:11ZXstrata chairman Sir John Bond mishandled Glencore deal from start | Nils Pratleyhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/nov/20/xstrata-chairman-john-bond-mishandled-glencore
Mixed messages on the controversial £140m retention package from Qatar Holdings did not make Bond's life easy – but the fault ultimately lay in the lack of leadership on Xstrata's board<p>In the end, <a href="http://www.guardian.co.uk/business/2012/nov/20/xstrata-chairman-pay-deal-glencore-takeover" title="">it was close at Xstrata</a>. The voting system was highly complex but a rough summary is this: Qatar Holding, by saying last week that it would abstain on the &pound;140m retention packages, ensured that the only way the Glencore deal could happen was if 75% of shareholders voted for the merger-cum-takeover without the awards. Swing voters knew what they had to do to get a thumbs-up for the transaction itself. Even then, the key resolution passed only by a whisker – 79% were in favour.</p><p>Should Xstrata chairman Sir John Bond take comfort in that? Of course not. It is humiliating for a company chairman to see his strong recommendation to shareholders ignored. His credibility as would-be chairman of Glenstrata was completely undermined and his resignation from that role was inevitable.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/nov/20/xstrata-chairman-john-bond-mishandled-glencore">Continue reading...</a>XstrataMiningBusinessGlencoreMergers and acquisitionsTue, 20 Nov 2012 18:25:08 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/nov/20/xstrata-chairman-john-bond-mishandled-glencoreFabrice Coffrini/AFP/Getty ImagesXstrata chairman Sir John Bond walks past demonstrators outside a shareholder meeting in Zug. Photograph: Fabrice Coffrini/AFP/Getty ImagesFabrice Coffrini/AFP/Getty ImagesXstrata chairman Sir John Bond walks past demonstrators outside a shareholder meeting in Zug. Photograph: Fabrice Coffrini/AFP/Getty ImagesNils Pratley2012-11-20T18:25:08ZXstrata gives shareholders freedom – but not enough information – to choose | Nils Pratleyhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/oct/01/xstrata-shareholders-freedom-choose-glencore
Why are the retention packages so large? How many executives would quit if deprived of their golden carrots? What about Xstrata and Glencore's differing capital strategies? Not good enough<p>If in doubt, let the shareholders decide. It's rarely a bad principle and it's no surprise that Xstrata's board, after numerous cock-ups, has sought sanctuary in it. Xstrata investors can now vote to have their company combine with Glencore only if a &pound;140m retention package for 70 executives is approved, which is what the board recommends. Or they can have the merger-cum-takeover without the lavish handouts. Or they can shoot down the deal altogether.</p><p></p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/oct/01/xstrata-shareholders-freedom-choose-glencore">Continue reading...</a>XstrataMiningBusinessGlencoreMergers and acquisitionsMon, 01 Oct 2012 17:36:27 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/oct/01/xstrata-shareholders-freedom-choose-glencoreFabrice Coffrini/AFP/Getty ImagesXstrata chairman Sir John Bond and his colleagues have fallen short. Photograph: Fabrice Coffrini/AFP/Getty ImagesFabrice Coffrini/AFP/Getty ImagesXstrata chairman Sir John Bond and his colleagues have fallen short. Photograph: Fabrice Coffrini/AFP/Getty ImagesNils Pratley2012-10-01T17:36:27ZXstrata chairman Sir John Bond's many mistakeshttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/10/xstrata-chairman-john-bond-mistakes
For one, Bond should have recognised at the outset that the idea of a merger-of-equals with Glencore was a nonsense<p>The notion that the post-deal boardroom survival of Sir John Bond could be regarded as a gift to Xstrata's shareholders is surely Ivan Glasenberg's idea of a joke. Whatever else Xstrata shareholders think about Glencore's improved terms (and there's a wide range of views out there), there's no campaign to save Bond and install him as chairman of a Glenstrata combo.</p><p>Bond's first mistake in February was to agree an all-share deal with a tiny takeover premium of 8%. The rationale then was that the two companies were merging as equals. Yeah, right. The merger-of-equals idea was always a nonsense, as Glasenberg has now brutally demonstrated with his proposal that Xstrata chief Mick Davis must go, albeit with six months to say his goodbyes. So much for Glasenberg's previous acquiescence with the line that Davis' presence was critical to future operational success. What Glasenberg really thinks is he can do a better job himself.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/10/xstrata-chairman-john-bond-mistakes">Continue reading...</a>XstrataMiningBusinessGlencoreMergers and acquisitionsMon, 10 Sep 2012 18:39:07 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/10/xstrata-chairman-john-bond-mistakesUrs Flueeler/EPASir John Bond, chairman of Xstrata, leaves a shareholder meeting in Zug, Switzerland, last week. Photograph: Urs Flueeler/EPAUrs Flueeler/EPASir John Bond, chairman of Xstrata, leaves a shareholder meeting in Zug, Switzerland, last week. Photograph: Urs Flueeler/EPANils Pratley2012-09-10T18:39:07ZGlencore/Xstrata battle likely to get bloodierhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-will-get-bloodier
Glasenberg's 11th-hour tactics are brilliant or outrageous depending on whose camp you're in<p>Welcome to the world of mergers and acquisitions, Mr Blair. You've picked a corker – a deal that threatens to become the nastiest and most bitter we've seen for years. The decades-old friendship-cum-jolly-rivalry between Glencore's Ivan Glasenberg and Xstrata's Mick Davis already looks to be dead. And in the middle of the drama stand your friends from Qatar, who will settle the outcome.</p><p>Glasenberg's hardball, 11th-hour tactics are brilliant or outrageous, depending on whose camp you're in. The arch-trader may be close to pulling off a coup, albeit after being forced by the Qataris to blink on price. But it's still possible that he has shot himself in the foot and the deal will collapse. Odds? Probably 70/30 that Glencore prevails: might usually does when the gloves come off in City battles.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-will-get-bloodier">Continue reading...</a>GlencoreStock marketsBusinessXstrataMiningMergers and acquisitionsCommoditiesFri, 07 Sep 2012 21:12:00 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-will-get-bloodierPRXstrata chief Mick Davis. Wasn’t the original idea that Ivan Glasenberg would work as Mick Davis’s deputy just a polite fiction?PRXstrata chief Mick Davis could still collect a £30m retention payment even if he doesn't stay for the intended three yearsNils Pratley2012-09-07T21:12:00ZGlencore-Xstrata: more questions than answershttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-more-questions-than-answers
Now Ivan Glasenberg is prepared to offer 3.05 Glencore shares for every Xstrata share but the mess is a long way from being resolved<p>The test question used at Xstrata's shareholders' meeting to check the electronic system was working was: do you prefer cheese fondue or chocolate fondue? A better question for chairman Sir John Bond to ask would have been: whose board has most egg on its face – Xstrata's or Glencore's?</p><p>It's an open question since Mick Davis, Xstrata's chief executive, had claimed that a merger ratio of 2.8 times was the best that could be negotiated in &quot;the universe of the possible&quot;. <a href="http://www.guardian.co.uk/business/2012/sep/07/glencore-delay-xstrata-merger-vote" title="">Now Ivan Glasenberg is prepared to offer 3.05 Glencore shares for every Xstrata share</a>.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-more-questions-than-answers">Continue reading...</a>GlencoreStock marketsBusinessXstrataMiningCommoditiesFri, 07 Sep 2012 12:28:09 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/07/glencore-xstrata-more-questions-than-answersUrs Flueeler/APGlencore headquarters in Switzerland. Photograph: Urs Flueeler/APUrs Flueeler/APGlencore wants to bid for the Xstrata stock it does not already own, but rival shareholder Qatar Holding could block the takeover. Photograph: Urs Flueeler/APNils Pratley2012-09-07T12:28:09ZHow much of Xstrata does Qatar Holdings want to own?http://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/03/xstrata-qatar-holdings-blocker-ivan-glasenberg
A 10% stake would have been sufficient as a blocker to Ivan Glasenberg's merger pitch – so why buy 12%?<p>The sovereign wealth fund has gobbled 12% of the miner, which represents overkill in terms of firepower to thwart Glencore's proposed all-share scheme of arrangement. Given the presence of other declared opponents to Ivan Glasenberg's merger pitch of 2.8 Glencore shares for every Xstrata share, a stake of 10% or so would have been sufficient as a &quot;blocker&quot;.</p><p></p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/03/xstrata-qatar-holdings-blocker-ivan-glasenberg">Continue reading...</a>GlencoreStock marketsBusinessXstrataMiningMergers and acquisitionsMon, 03 Sep 2012 18:22:01 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/sep/03/xstrata-qatar-holdings-blocker-ivan-glasenbergSiu Chiu/ReutersXstrata shareholders will vote on Glencore chief Ivan Glasenberg's offer on Friday. Photograph: Siu Chiu/ReutersSiu Chiu/ReutersXstrata shareholders will vote on Glencore chief Ivan Glasenberg's offer on Friday. Photograph: Siu Chiu/ReutersNils Pratley2012-09-03T18:22:01ZGlasenberg's Xstrata gambit is dead in the waterhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/aug/29/glencore-glasenberg-xstrata-deal
Glencore boss didn't see Qatar coming and he assumed almost everybody would recognise the supposed inevitability of the two companies combining<p>The mystery in the great Glencore-Xstrata saga is why Ivan Glasenberg allowed himself to be bounced into structuring the deal as a scheme of arrangement, thereby setting a threshold for victory of 75% approval from non-Glencore shareholders. Such a high hurdle opened the door for a deep-pocketed sovereign wealth fund - Qatar Holding - to gobble almost 12% of Xstrata and thereby achieve a blocking stake.</p><p>Over-confidence must be part of the explanation. Glasenberg didn't see Qatar coming (to be fair, nor did anybody else). He thought he would be dealing with the usual pusillanimous collection of fund managers who roll over in the end when even a modest takeover premium is on the table. And he assumed almost everybody would recognise the supposed inevitability of the two companies combining. After all, Glencore owns 35% of Xstrata and the combination had been talked about for years as the only logical resolution of the ownership tension.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/aug/29/glencore-glasenberg-xstrata-deal">Continue reading...</a>GlencoreStock marketsBusinessXstrataMiningMergers and acquisitionsWed, 29 Aug 2012 18:22:54 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/aug/29/glencore-glasenberg-xstrata-dealBobby Yip/ReutersGlencore chief executive Ivan Glasenberg is broadcast on a screen during a tele-conference in Hong Kong. Photograph: Bobby Yip/ReutersBobby Yip/ReutersGlencore chief executive Ivan Glasenberg is broadcast on a screen during a tele-conference in Hong Kong. Photograph: Bobby Yip/ReutersNils Pratley2012-08-29T18:22:54ZGlencore boss may prevail if Bond share deal acceptedhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/27/glencore-xstrata-glasenberg
Glencore's Glasenberg has been desperate to buy Xstrata for years and is not about to bow out just because a sovereign wealth fund is fighting for fair terms<p>Ivan Glasenberg, Glencore chief executive, rarely encounters people with deeper pockets than himself. He has now. Qatar Holdings, by buying 11% of Xstrata and declaring that the terms of Glencore's merger proposal are too mean, has pinned him against a wall. Pay more or the deal is dead, is its blunt message to the multi-billionaire.</p><p>But pay how much more? The Qataris say a ratio of 3.25 Glencore shares for every Xstrata share would be a &quot;more appropriate distribution of the benefits of the merger&quot; than Glencore's intended ratio of 2.8. OK, but is 3.25 a line in the sand or an opening pitch?</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/27/glencore-xstrata-glasenberg">Continue reading...</a>GlencoreBusinessXstrataMiningMergers and acquisitionsWed, 27 Jun 2012 18:38:56 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/27/glencore-xstrata-glasenbergSiu Chiu/ReutersGlencore chief executive Ivan Glasenberg. Photograph: Siu Chiu/ReutersSiu Chiu / Reuters/REUTERSGlencore chief executive Ivan Glasenberg has boosted his holding in the company to more than 15.8%, using some of his $110m dividend windfall. Photograph: Siu Chiu / Reuters/REUTERSNils Pratley2012-06-27T18:38:56ZXstrata: success is nothing X-ceptionalhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/25/xstrata-share-price
It's a good moment to look at what Xstrata's independent directors mean by the company's 'success' in share price terms: its performance is heavily skewed towards the early years<p>Xstrata's shares have lost about a third of their value since the company announced its &quot;merger of equals&quot; with Glencore on 7 February. That's not exceptional in itself since the whole mining sector has been weak – the market is pricing in lower prices for all commodities. But it's a good moment to look at what Xstrata's independent directors mean by the company's &quot;success&quot;. After all, this is the basis from which it is argued that it is absolutely essential that the top 73 managers receive &pound;173m in retention payments to hang around after completion of the deal.</p><p></p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/25/xstrata-share-price">Continue reading...</a>XstrataMiningCommoditiesBusinessGlencoreMon, 25 Jun 2012 11:15:50 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/25/xstrata-share-priceHSBCXstrata share price v peers. Source: HSBCHSBCXstrata share price v peers. Photograph: HSBCNils Pratley2012-06-25T11:15:50ZXstrata investors know what they should do: dig in and vote nohttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/21/xstrata-investors-know-vote-no
Yes, the merger with Glencore would collapse, at least for now. But a longer-term victory would be won – and the board might well come back with less onerous payment demands<p>Make-your-mind-up time approaches for Xstrata's shareholders. Here's what they should do. Vote against the &pound;240m of retention payments for the company's top executives. Swallow any short-term hit to the share price as the Glencore deal collapses. Sit back and count the long-term benefits of principled opposition to boardroom greed. Then ask if Xstrata's board, in its embarrassment, might ditch the hand-outs to try to resurrect the transaction later.</p><p>That would be a superficially attractive but ultimately irresponsible course, says the chorus of the timid. We must hold our noses, say these supposed pragmatists, because we want the merger with Glencore to proceed now and because Xstrata has made the deal dependent on approval of the payments to Mick Davis and his chums.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/21/xstrata-investors-know-vote-no">Continue reading...</a>Executive pay and bonusesXstrataGlencoreMiningCommoditiesMergers and acquisitionsBusinessThu, 21 Jun 2012 17:59:58 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/jun/21/xstrata-investors-know-vote-noAFP/Getty ImagesA miner at Xstrata's Kroondal mine in South Africa. Photograph: AFP/Getty ImagesAFP/Getty ImagesA miner at Xstrata's Kroondal mine in South Africa. Photograph: AFP/Getty ImagesNils Pratley2012-06-21T17:59:58ZXstrata's big players strike it rich without needing to dig | Nils Pratleyhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/may/31/xstrata-stikr-it-rich-without-needing-to-dig
The mining group's executives are being offered £172m to stay on after the Glencore merger – which they will earn by simply showing up for work. That sets an appalling precedent<p>&quot;You've got to be a player. What's the point of being in business if you can't be a player?&quot; So said Mick Davis in a famous speech in 2009. He was referring to the need to reload Xstrata's coffers via a rights issue after the bust in commodity prices. But the quote also reveals much about how Xstrata's management regard themselves.</p><p>They think the creation of the company in 2002, and its subsequent growth via acquisition over the past decade, was a supreme act of value-creation that could only have been achieved by a uniquely talented set of managers that dared to think big. They think they're players – and they expect to be paid as such.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/may/31/xstrata-stikr-it-rich-without-needing-to-dig">Continue reading...</a>Executive pay and bonusesXstrataGlencoreMiningBusinessThu, 31 May 2012 19:32:17 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/may/31/xstrata-stikr-it-rich-without-needing-to-digPRMick Davis: £9.6m a year on offer for staying at Xstrata for three years.PRMick Davis: £9.6m a year on offer for staying at Xstrata for three years.Nils Pratley2012-05-31T19:32:17ZXstrata chief's big payday should be tied to performancehttp://www.theguardian.com/business/2012/may/29/xstrata-bonus-mick-davis-glencore
Mining firm's chief executive, Mick Davis, could receive £50m in deal packaged with vote on takeover by Glencore<p>The figure of up to &pound;50m over three years, or &pound;45,000 a day, is rumour. But it is clear Mick Davis is about to be handed a very large retention package to stay at the mining firm Xstrata after Glencore's intended takeover of the company.</p><p>What's more, it seems likely that the reward for Davis, chief executive of Xstrata, is only part of the story: Glencore wants to retain the bulk of Xstrata's management and so will also shower rewards on others there.</p> <a href="http://www.theguardian.com/business/2012/may/29/xstrata-bonus-mick-davis-glencore">Continue reading...</a>XstrataGlencoreMiningMergers and acquisitionsBusinessWorld newsStock marketsTue, 29 May 2012 17:15:00 GMThttp://www.theguardian.com/business/2012/may/29/xstrata-bonus-mick-davis-glencoreLaurence CendrowiczMick Davis, chief of mining firm Xstrata, will profit by a takeover deal that reportedly has no performance conditions attached. Photograph: Laurence CendrowiczLaurence CendrowiczMick Davis, chief of mining firm Xstrata, will profit by a takeover deal that reportedly has no performance conditions attached. Photograph: Laurence CendrowiczNils Pratley2012-05-29T17:15:00ZXstrata shareholders send Ivan Glasenberg a messagehttp://www.theguardian.com/business/nils-pratley-on-finance/2012/may/01/xstrata-shareholders-ivan-glasenberg-message
Opposition to Glencore's all-share takeover bid appears to be growing – at least at the current price<p>Xstrata's shareholders, or some of them, are in unco-operative mood, which is not welcome news for Ivan Glasenberg, Glencore's chief executive, as he pursues his lowball all-share takeover attempt.</p><p>The chunky 19% vote against David Rough, head of Xstrata's pay committee, was the highlight of the results from the annual meeting. But there was also a 13% vote against Glasenberg's re-election to the board of Xstrata, on which he sits by virtue of Glencore's right to appoint three directors to reflect its 35% shareholding. Given that Glencore will have voted its shares in support of its boss, a 13% refusal counts as a big score. It is also significantly more than the thin 3.75% opposition to Glasenberg a year ago.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/may/01/xstrata-shareholders-ivan-glasenberg-message">Continue reading...</a>XstrataMiningBusinessGlencoreStock marketsMergers and acquisitionsTue, 01 May 2012 17:44:30 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/may/01/xstrata-shareholders-ivan-glasenberg-messageYm Yik/EPASome 13% of Xstrata shareholders voted against Ivan Glasenberg's re-election to the board on Tuesday. Photograph: Ym Yik/EPAYm Yik/EPAIvan Glasenberg, chief executive of Glencore, during the tele-conference in Hong Kong on Thursday, during which he dismissed the commodities slump as 'froth'. Photograph: Ym Yik/EPANils Pratley2012-05-01T17:44:30ZGlencore chief protests too muchhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/mar/05/glencore-chief-ivan-glasenberg-xstrata
Ivan Glasenberg is likely to offer some form of sweetener to persuade reluctant Xstrata shareholders to agree to the takeover – but he'll deny it until it happens<p>Ivan Glasenberg protests too much. He used the phrase &quot;merger of equals&quot; at every opportunity, as if mere repetition would persuade Xstrata's suspicious shareholders to be grateful for the modest takeover premium (8% on one basic yardstick) <a href="http://www.guardian.co.uk/business/2012/mar/05/glencore-xstrata-no-sweetener" title="">that Glencore is offering for their firm</a>.</p><p></p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/mar/05/glencore-chief-ivan-glasenberg-xstrata">Continue reading...</a>GlencoreStock marketsBusinessXstrataMiningMergers and acquisitionsMon, 05 Mar 2012 16:05:08 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/mar/05/glencore-chief-ivan-glasenberg-xstrataBobby Yip/ReutersGlencore chief Ivan Glasenberg on a teleconference screen. Photograph: Bobby Yip/ReutersBobby Yip/ReutersGlencore chief Ivan Glasenberg on a teleconference screen. The wording of his contract is only the latest faux pas by the group. Photograph: Bobby Yip/ReutersNils Pratley2012-03-05T16:05:08ZWhat a previous big mining club deal can show us about the Glencore offerhttp://www.theguardian.com/business/nils-pratley-on-finance/2012/feb/08/glencore-and-lessons-from-history-of-mining-deals
Xstrata's shareholders are being asked to swallow hard and accept Glencore's terms<p>One more thing about the miserly premium that Glencore has offered in its bid for Xstrata: it looks even less generous when you look at another huge all-paper transaction proposed a few years ago by a member of the big mining club.</p><p>Andrew Keen, analyst at HSBC, reminds us that BHP Billiton initially offered a 21% premium when it bid for Rio Tinto at end of 2007. Tom Albanese, Rio's boss, reckoned that was &quot;ball parks&quot; away from fair value. Even when BHP raised its offer from three to 3.4 of its shares for every Rio share, Albanese protested about a &quot;significant&quot; undervaluation.</p> <a href="http://www.theguardian.com/business/nils-pratley-on-finance/2012/feb/08/glencore-and-lessons-from-history-of-mining-deals">Continue reading...</a>GlencoreXstrataStock marketsIPOsBusinessMiningWed, 08 Feb 2012 18:15:53 GMThttp://www.theguardian.com/business/nils-pratley-on-finance/2012/feb/08/glencore-and-lessons-from-history-of-mining-dealsRomina Amato/REUTERSGlencore's headquarters in Baar, Switzerland. Photograph: Romina Amato/REUTERSRomina Amato/REUTERSGlencore's headquarters in Baar, Switzerland. Photograph: Romina Amato/REUTERSNils Pratley2012-02-08T18:15:53Z